It’s not just electric vehicles. Toyota is warning, “We don’t have much time left,” with China poised to take the lead in another emerging technology following EVs.
Toyota is warning that China’s lead with EVs is just the start
It’s no secret by now that China is, by far, leading the transition to electric. Last year, over 17 million EVs were sold globally. According to Rho Motion, China accounted for 11 million, or over 60%.
Even as new models from leading OEMs like Volkswagen, Hyundai, and Kia are being introduced, China continues outpacing every other country. Through the first three months of 2025, over 2.4 million electric cars were sold in China, nearly 60% of the 4.1 million sold globally.
And it’s not just electric vehicles. Most batteries that power them also come from China, with companies like CATL and BYD dominating the market.
Data from SNE Research shows that CATL and BYD alone accounted for over 55% of the global EV battery market in 2024. With overseas sales surging in key markets like Southeast Asia, Europe, and Central and South America, BYD is not only selling more EVs but also the batteries needed to power them.
In March, BYD released its new Super e-platform with ultra-fast charging batteries that can add 250 miles range in just five minutes. The first model based on the platform, the Han L, starts at just 219,800 yuan ($30,000).
And then there’s the smart driving technology. Earlier this year, BYD confirmed that most of its vehicles, including its ultra-low-cost Seagull, will now include its new “Gods Eye” driver-assistance system. Others like Huawei and Momenta are racing ahead with newer, more advanced ADAS systems.
Now, Toyota is warning that China is about to take the lead in another emerging industry, following EVs. Misumasa Yamagata, president of Toyota’s hydrogen business, warned that hydrogen vehicles are headed for the same fate as EVs.
According to the Financial Times, Yamagata said, “We don’t have much time left — it’s important to accelerate quickly.”
Toyota has been developing hydrogen vehicles for over 30 years. However, like electric cars, China is quickly taking market share.
China already accounts for the majority of hydrogen commercial vehicle sales. Toyota’s hydrogen boss explained, “China is the most advanced in the world for hydrogen trucks.” Why? Yamagata states it’s “because the Chinese government ordered turning major logistics routes into hydrogen highways.”
China is rapidly expanding refuelling stations while driving down costs, which are now just a third of Japan’s. Hydrogen fuel cell bus and truck sales in China were higher than in every other market combined, at 7,069.
Electrek’s Take
We are already seeing it happen with electric vehicles. With a flood of new EVs entering China, BYD, XPeng, NIO, and most others are now looking overseas to drive growth.
BYD’s overseas sales hit another record in April, with nearly 80,000 vehicles sold overseas, which is its fifth straight month of growth. In total, BYD sold over 380,000 new energy vehicles (EVs and PHEVs), 195,740 of which were purely electric.
According to S&P Global Mobility, BYD’s sales are expected to double in Europe to around 186,000 in 2025. By 2029, that number could reach around 400,000.
Meanwhile, the Trump administration is alienating trade partners with new tariffs on imports while threatening to end federal incentives, which will only put the US further behind.
It’s already becoming evident in global markets like Thailand, Brazil, Mexico, Indonesia, and several others, where Chinese brands are quickly gaining a presence.
The trend is only expected to accelerate with new tech quickly advancing. Will China continue reshaping the global auto and tech market? Let us know what you think in the comments.
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